On January 1, 2003, Ginseng Corp. issues $1,000,000 of 8% bonds which may be converted into total 10,000 shares of $2 par value ordinary shares. The market rate of interest is 10%. Interest is payable annually on December 31, and the bonds were issued at par. The maturity date is December 31, 2007. 

Prepare the journal entry on January 1, 2003, based on US GAAP and IFRS, respectively.

Prepare the journal entry on December 31, 2003, based on US GAAP and IFRS, respectively. 

If all of the bonds were converted on January 1, 2004, prepare the journal entry on January 1, 2004, based on US GAAP and IFRS, respectively. If none of the bonds were converted, prepare the journal entry on the date of maturity date, December 31, 2007, based on US GAAP and IFRS, respectively.

Answer rating: 100% (QA)

1 Journal entries under US GAAP Assets Liabilities Total Shareholders equity Cash 10... View the full answer